Bank Interest and Insurance cause Recession in the World

Why are all sorts theories of the economy in the World has stalled in practice so not able to regulate their own national monetary stability?

The answer is most appropriate for the world economy, in each country, has been affected by the banking and Insurance. Both kinds of efforts is highly forbidden by Islamic law because its motives are highly dangerous of interest on money lent.

Development's Theories of communist ideology, capitalist, and socialist its self was not able to govern themselves.

The statesmen and technocrats are not able to bring national monetary system stability.

There is no correct theory in set construction, as if theory stalled. This is where the look of bankruptcy ideologies. Theories that can not save the above issues is a challenge.

Could the bank without interest was established? Perhaps, even more reasonable and effective for the improvement of the local economy.

World trade is not dead if interest rates in the banking system to be abolished, even more successful without incriminating stuff.

Because insurance levy rates in the banking system, and bank interest is riba which is haraam, surely the insurance itself is forbidden by Islam.

So good or bad the economy of people is a picture of bad or good governance function in society.




سم الله الرحمن الرحيميَا أَيُّهَا النَّاسُ اتَّقُواْ رَبَّكُمُ
الَّذِي خَلَقَكُم مِّن نَّفْسٍ وَاحِدَةٍ وَخَلَقَ مِنْهَا زَوْجَهَا وَبَثَّ مِنْهُمَا رِجَالاً
كَثِيراً وَنِسَاء وَاتَّقُواْ اللّهَ الَّذِي تَسَاءلُونَ بِهِ وَالأَرْحَامَ إِنَّ اللّهَ كَانَ عَلَيْكُمْ رَقِيباً
4/1. O people, repentant your Lord on Who created you from a single self and created
from her husband, and the breed of both men and women a lot. Repentant on Allah
Same you ask HIM and (Repentant is in) love. That Allah is a guard over you.

وَمَنْ أَعْرَضَ عَن ذِكْرِي فَإِنَّ لَهُ مَعِيشَةً ضَنكاً وَنَحْشُرُهُ يَوْمَ الْقِيَامَةِ أَعْمَى
20/124. And who turns away from thinking of ME then his life miserable, and WE gather
him blind on the Day of Resurrection.

أَهُمْ يَقْسِمُونَ رَحْمَةَ رَبِّكَ نَحْنُ قَسَمْنَا بَيْنَهُم
مَّعِيشَتَهُمْ فِي الْحَيَاةِ الدُّنْيَا وَرَفَعْنَا بَعْضَهُمْ فَوْقَ بَعْضٍ
دَرَجَاتٍ لِيَتَّخِذَ بَعْضُهُم بَعْضاً سُخْرِيّاً وَرَحْمَتُ رَبِّكَ خَيْرٌ مِّمَّا يَجْمَعُونَ
43/32. Are they determine the mercy of your Lord? WE who determines Among them
their live lives in the world, and We raised degrees half of them on the half that half of them
held a mockery of the half. And the mercy of your Lord is better than what they amass.

Man is a form of creation by Allah, coming from a self-determined woman suffered parthenogenes are pregnant without a husband and gave birth to her baby boy who grew a bustling society as social beings. Now there is not a man nor a self-evolved from monkeys, as believed by many Western scholars who explore the nature of matter with mind power alone and determine all objects evolve, to proceed, to change from one form to another.

Because people came from one person who has now become a diverse nation, must all have the same instincts and needs both personally and in the community. Everything requires advances the quality of life, especially in the economic field as a very important factor where applicable race and the competition is usually no compunction. About these people are summoned to always remember to Allah that HIS law must always be aware of, because HE, scientifically and experience, as recognized to be the controler and Ruler of the universe life. Accordingly it must also be realized that the man, a submissive or forced, just ask HIM, and between human society was obliged to apply the good cooperation on the basis of compassion.

One certainty is impossible inevitable that humans are social beings in which no one is able to live alone, each mutually expect and require, then the best way of life is mutual respect, mutual consideration and help, on the basis of the so-called love was, and even this must be according to the law derived by Allah. Instead of people being selfish themself also to harm another person, means the damaging social creatures arrangement where he is, then so is the attitude of harming himself. People who try to live in love but not based on the law handed down by Allah, they would be disappointed because the range of legal wisdom which they set very short and limited equivalent with their own civilization, it was always influenced by his selfishness and injustice are ultimately destructive of society.

Need for a conviction in Allah and human affection of intent as expressed Ayaah 4/1, also been stated in Ayaah 3/112 which suggests a vertical relationship with Allah and horizontal with neighbors. Who would negate both these relationships or one of them, then he gets the anger of Allah and the lives of the poor. The relationship is also referred to in Scripture with some commands that humans establish prayer and give zakah. Prayer is a relationship with Allah and Zakah relations with the community. So life must take place in system of democratic divinity in socioeconomic, political, and cultural. About that Islam gives enough provisions even equipped with the scientific evidence for the improvement of civilization in the field of knowledge about physics and metaphysics as did about macro and micro cosmos.

One thing that should be a concern for every thinkers, especially those who are classified as are economists who deal with problems of population and food problems, the provisions contained in Ayaah 43/32 which means cited earlier. It is not the man with all activities to determine the value of the lives of the world but Allah that govern then there are the more advanced life among the less advanced group. There are mocked and ridiculed, but Ayaah 20/124 gives legal sanction that anyone who turns away from the law of Allah then surely his life misery.

We say it should be a concern is because of the provisions contained in Ayaah 43/32 to be a tested case for each of the people present in the form of the nation and the state, whether they are justified or not. Justifying this provision means it must comply with the system of democratic divinity in all areas of life in which the force of law which are described in Alquran as a staple for vertical and horizontal relationships. If it does not justify the provision of Ayaah 43/32 automatically means not recognizing the law of Allah and they considered Infidels, it is contrary to logical thinking and evidence of true history. So the purpose of Ayaah 43/32 there can be no The third group, there should be no hesitation attitude as Muzabzabin here not and there is not. Every community should be denied and the infidels then states could determine the life of the nation, but ended up with misery, and each with may recognize and be obedient then perform live according to the laws of Allah. About this called:

يَا أَيُّهَا الَّذِينَ آمَنُواْ ادْخُلُواْ فِي السِّلْمِ
كَآفَّةً وَلاَ تَتَّبِعُواْ خُطُوَاتِ الشَّيْطَانِ إِنَّهُ لَكُمْ عَدُوٌّ مُّبِينٌ
2/208. O believers, enter into a whole way of Islamic law, do not
follow the mistakes of the devil, he is the real enemy to you.

وَجَزَاء سَيِّئَةٍ سَيِّئَةٌ مِّثْلُهَا
فَمَنْ عَفَا وَأَصْلَحَ فَأَجْرُهُ عَلَى اللَّهِ إِنَّهُ لَا يُحِبُّ الظَّالِمِينَ
42/40. That those who fabricated OUR Ayaah is not hidden to US.
What is placed in Hell is better, or which came as a believer on the Day of
Resurrection? Do what you want, that HE look at what you do.

The unbelievers can do what they want in the world today, appropriate to the law of Allah or against them, but in the Hereafter are placed in a disaster. They should plan on life in many ways and the assumption can determine everything, but the range of that plan is very vague and their assumption is an illusion and are wrong. Instead people who claim to be believers should fully comply with and implement the law of Allah, not to be absurdly responsibility, and hesitant as muzabzabin because such an attitude is very detrimental in all areas of life. Those who do not fully implement the law of Allah, although establishing prayer, fasting and Hajj, must belong hypocrite or muzabzabin, so for anyone who intentionally doing that to say:

إِنَّ الْمُنَافِقِينَ فِي
الدَّرْكِ الأَسْفَلِ مِنَ النَّارِ وَلَن تَجِدَ لَهُمْ نَصِيراً
4/145. That the hypocrites are in the lower achievement of Hell.
And you would find no helper for them.

إِلاَّ الَّذِينَ تَابُواْ وَأَصْلَحُواْ
وَاعْتَصَمُواْ بِاللّهِ وَأَخْلَصُواْ دِينَهُمْ لِلّهِ فَأَ
وَسَوْفَ يُؤْتِ اللّهُ الْمُؤْمِنِينَ أَجْراً عَظِيماًُوْلَـئِكَ مَعَ الْمُؤْمِنِين
4/146. Except for the repentant and pious and adhered to the (law) Allah
and specialized his religion to Allah. That is the common believer, and that Allah
will give believers a great reward.

Lots to talk about the socio-economic community, the question here is about banking and Usury issue. Because humans are social beings whose lives are interconnected, so the assessment of the economy from some one can not be separated from the structure of economic community. This means that a person's economic value depends on the economic system of the surrounding area in a given society. Remember that human society is a group of people with a particular LAW and DEVOTION where there is government control of your life. So good or bad the economy of people is a picture of bad or good governance function in society.

BANK is the field of income for the economists to make a profit from the general situation prevailing between producers and consumers, are valid under applicable law. They work in the bureaucracy in the calculation of the in and out where they get a certain portion. In such a case they become middlemen or intermediary that is not really productive but plays an important role in the economy.

Disadvantaged groups as an indirect result of the banks. This group is the general public who buy goods produced from bank loans. Why? The reason is because the debtor was forced to raise the price of its production unit at interest rates that must be paid to the bank. If the price increase is not be done then the bank interest payments might not be fulfilled. As a result, people are forced to buy more expensive items, and this has lead to Nuncotrollable Inflation, also called The Economic Recession, then usually government doing Monetary Actions that harm the majority community. Thus monetary actions is necessary so that government can continue.

The shareholders actually been influenced by suggestions from banking experts. They add capital as a customer because they expect interest rates as an advantage. But they forget that the bank itself cause Inflation because the government was forced to raise the salaries of civil servants is comparable to the price increases caused by the banking, and sometimes it's inflation is higher than bank interest they expected. And if they use that capital for companies that are more profitable and productive even more intensified development in society. Their attitude gives the stock to a bank is giving pleasure to some people with the interest and increases in prices of daily necessities where they shared many of the people suffering from economic stress.

In terms of Islamic law, shareholders usually do not meet rules on alms and charity they must comply with the excuse the lack of cash. They expect interest is called usury forbidden in Islam. Finally in the capital, they have killed a wealth of activities for the benefit of themselves and the people, in development they has removed the opportunity. They automatically cause unrest public life, because that Allah threatened them with Scripture that point as follows:

الَّذِينَ يَأْكُلُونَ الرِّبَا لاَ يَقُومُونَ إِلاَّ كَمَا يَقُوم
ُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُواْ إِنَّمَا الْبَيْعُ
مِثْلُ الرِّبَا وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ
فَانتَهَىَ فَلَهُمَا سَلَفَوَأَمْرُهُ إِلَى اللّهِ وَمَنْ عَادَ فَأُوْلَـئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ
2/275. Those who devour Usury will not stand except as stands one whom struck by a touch of the devil.
Similarly, because they say that the commercial is the same as usury. Allah justify trade and forbidden Usury,
then who is up to his lesson from his Lord, stop, and to him what had passed, and his business to Allah.
And who repeats, that herd of Hell, to dwell therein.

يَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِ وَاللّهُ لاَ يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ
2/276. Allah suppress usury and nourish charity-almsgiving, and Allah
does not like any sinful pagan attitude.

إِنَّ الَّذِينَ آمَنُواْ وَعَمِلُواْ الصَّالِحَاتِ وَأَقَامُواْ الصَّلاَةَ
وَآتَوُاْ الزَّكَاةَ لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْوَلاَ خَوْفٌ عَلَيْهِمْ وَلاَ هُمْ يَحْزَنُونَ
2/277. That those who believe and work righteous and establish prayer and give zakah,
to them their wages in their Lord, and no fear upon them and they are not grieving.

يَا أَيُّهَا الَّذِينَ آمَنُواْ اتَّقُ
واْ اللّهَ وَذَرُواْ مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ
2/278. O believers, aware is in Allah and so leave
the remainder of Riba if you are believers.

فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍ مِّنَ اللّهِ وَرَسُولِهِ
وَإِن تُبْتُمْ فَلَكُمْرُؤُوسُ أَمْوَالِكُمْ لاَ تَظْلِمُونَ وَلاَ تُظْلَمُونَ
2/279. If you do not declare the war is from Allah and HIS messenger.
And if you repent, then you heads in your possession,
you do not to be harm and to harm.

The depositor have also been influenced by the advice of banking and even school children come to deposit, as well as those who claim to believe as stated in Ayaah 2/278. In this case a lot of people forget that the savings thus causing economic activity and trade increasingly sluggish because the money supply is less, the prices of goods go up and household budget it's not enough. That portion of the ordinance war contained in Ayaah 2/279.

Besides, when the state of inflation, and the price of goods shot up then the savings initially worth 10 grams of gold, apparently has dropped to 6 grams or may be lower.

But who were the most severely caused by the banking system? The most severe is the people as consumers because they are forced to buy goods more expensive every year.

That the theory of economic development must rely on a variety of religious terms. And the only religion that gives sufficient legal provisions on the local economy is Islam and Alquran which should not only be used by Muslims but also beneficial for people who oppose religion.
is true according to the law contained in Alquran, that bank interest is Usury, and Usury is forbidden by Ayaah 2/275.
Could the bank without interest it was established? Perhaps, even more reasonable and effective for the improvement of the local economy.


THE SOLUTION:

This can be true in Muslim countries where governments actually served to the people. Its capital is the amount of money states (TAX/SADAKHAH) plus the deposits of rich people who have extra money in circulation trade. People who need money, can borrow without interest but must be with a guarantee like that normally apply. On loan that must be thorough research in order and the amount of money borrowed, while employees are public servants who receive a monthly salary from the government at the expense of the state.

Had the borrower failed in his company, or unable to pay its debts, the situation was not so hard because he borrowed money that the state does guarantee his life, and other duties shall apply for the government to improve the economy as a whole, while the borrower is not able to pay the debt was valid purpose Ayaah:

وَإِن كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍ وَأَن تَصَدَّقُواْ خَيْرٌ لَّكُمْ إِن كُنتُمْ تَعْلَمُونَ
2/280. If he (the debtor) is in trouble then respite till may. If you do charity is better for you,
if you but knew.

إِنَّمَا الْمُؤْمِنُونَ إِخْوَةٌ فَأَصْلِحُوا بَيْنَ أَخَوَيْكُمْ وَاتَّقُوا اللَّهَ لَعَلَّكُمْ تُرْحَمُونَ
49/10. That the believers are brothers, so do good among the brethren, and repentant
to Allah may you loved.

So the bank is not forbidden in Alquran but the Interest is called Usury. But can such economists welcome the world now? Could the bank without interest carried in their opinion? Of course not, because the bank without interest so, they have lost their livelihoods. But in Islam it surely applies as adherents really believe in the law of Allah. The believers are brothers, Islamic law-abiding society where the state is by the people, from the people, and for the people. In the deity of democracy so no-interest bank a necessity not a possibility.
If the required basic law stating that it is synonymous with usury interest money in the banking system, then we attach the meaning of Ayaah 2/275 to 2/280, and to consider the issue more as usury contained in this Ayaah mean:

يَا أَيُّهَا الَّذِينَ آمَنُواْ لاَ تَأْكُل
ُواْ الرِّبَا أَضْعَافاً مُّضَاعَفَةً وَاتَّقُواْ اللّهَ لَعَلَّكُمْ تُفْلِحُونَ
3/130. O believers, do not eat riba multiple regression, Repentant
in Allah hope you win.

وَأَخْذِهِمُ الرِّبَا وَقَدْ نُهُواْ عَنْهُ
وَأَكْلِهِمْ أَمْوَالَ النَّاسِ بِالْبَاطِلِ وَأَعْتَدْنَا لِلْكَافِرِينَ مِنْهُمْ عَذَاباً أَلِيماً
4/161. And they taking on usury what they really prevented, and consuming
human treasures vanity, WE provide to the unbelievers of their painful ordeal.

وَمَا آتَيْتُم مِّن رِّباً لِّيَرْبُوَ فِي أَمْوَالِ النَّاسِ فَلَا يَرْبُ
و عِندَ اللَّهِ وَمَا آتَيْتُممِّن زَكَاةٍ تُرِيدُونَ وَجْهَ اللَّهِ فَأُوْلَئِكَ هُمُ الْمُضْعِفُونَ
30/39. Whatever you give of Usury in order to grow the wealth of human, it is not
grow in Allah, And whatever you give of zakat covet face Allah, are the ones who have to
multiply (goodness).

The meaning of this last Scripture clearly calls Usury is synonymous with bank interest in the banking system, lent to the debtor so widespread in society. Western economists expect that interest rates are equal to the results of the trade as it says in Ayaah 2/275, but AllAH justified by Trading but forbidden Usury.

Forbidden is taking interest as usury, not banks and not debt owed. Many people owe but are not forbidden because it contains no interest or Usury.

World trade is not stopped when the bank interest in the banking system abolished, even more successful without incriminating stuff. The way is through the authority of the government among the nations of the world who each need each other, at a party applies excess production for export, and on the other there is a deficiency that must be met. It is strange that international trade can only take place regarded by bank interest in the banking system. On the contrary that history proves that the progress of the world's banking system led to economic stagnation.

It also said that Usury is not only in the interest of borrowing money in the bank. This is true because that belonged to riba is all the result of the property lent to others and it does not diminish the value of the goods according to the normal rate for a loan. And usury was the result of the loaned property, not directly done by the owner, while its value remains unchanged according to the bourse. So usury is comprised of:

a. Interest earned in the banking, insurance are authorized or not.
b. Lease of land on loan for a residence or for other purposes.
c. The results of the property and lent for capital to others without the profit and loss account.

That members who have capital but does not go to work in the business, it is prohibited to take it. If he took also the result is haraam.

قَالَ لَقَدۡ ظَلَمَكَ بِسُؤَالِ نَعۡجَتِكَ إِلَىٰ نِعَاجِهِۦ‌ۖ
وَإِنَّ كَثِيرً۬ا مِّنَ ٱلۡخُلَطَآءِ لَيَبۡغِى بَعۡضُہُمۡ عَلَىٰ بَعۡضٍ إِلَّا ٱلَّذِينَ ءَامَنُواْ
وَعَمِلُواْ ٱلصَّـٰلِحَـٰتِ وَقَلِيلٌ۬ مَّا هُمۡ‌ۗ وَظَنَّ دَاوُ ۥدُ أَنَّمَا فَتَنَّـٰهُ فَٱسۡتَغۡفَرَ رَبَّهُ ۥ وَخَرَّ رَاكِعً۬ا وَأَنَابَ
38/24. He said: "What he has been persecuting you by demanding your sheep to his sheep. That much of
the cooperation (partnership), half of them mistreat of them, Except those who believe and work righteous, those
very few who do not. " And David thought that WE bothered, then he asked for forgiveness to his Lord,
and he go down, bow, and back.

It's a complete Islamic teachings contained in Alquran. Then in Ayaah 38/24 contained an overview of the human mind, to the general attitude about the economy. It molestation among members of the partnership does apply even though they are in one family.
But the best of the cooperation within the Islamic community is through government that governs people's economy directly, show them the less expert help or lend capital to the shortage, provide jobs for the unemployed.
In relation to the banking system as riba prohibited in Islam and even threatened with war in Ayaah 2/279.

Along with co-operative banks and the field livelihoods of bureaucratically economists, is also Insurance. At the beginning of the 15th century Hijri insurance there are many of them referred to as life insurance, health, home, cars, boats, planes, and so on. Everything is working with banks in the system of interest.

Because insurance have taken an interest in the banking system, and bank interest is riba which is haraam, surely the insurance itself is forbidden by Islam. Of the state bank, Savings Fund for Hajj, and insurance actually known that interest or usury which plays an important role, then all sorts of companies that are forbidden while still taking usury or still to earn interest.

If people think honest and strive to improve the economy, especially for development in all spheres of life, the first attitude is to be expected abolish gambling and usury in life. In terms of the whole, from gambling and usury was never obtained kindness unless the economic collapse and mass society. Both kinds are forbidden often associated together because both are motivated by seeking wealth in a way that is prohibited by Allah, but both as usual are handled by economists who do not live up to the law of Allah, it is often the people involved even who consider themselves Muslims with the notion that gambling and usury are so auspicious.

In determining good and bad, people need basic guidance, in Islam is called Alquran. That guidance is certainly one, not more, because it is more than one cause is always competition and conflicts among themselves. As adherents of Islam, one must make Alquran as the basis of his guidedance and choose those knowledgeable, honest and pious as leader. And these leaders as the government must act on the law contained in Alquran. That way it can be expected improvement in the economy and an increase in advances. Woe to the man whose life did not punish with what Allah gave, but more woe again they are deliberately misleading the people themselves:

وَكَذَّبَ بِهِ قَوْمُكَ وَهُوَ الْحَقُّ قُل لَّسْتُ عَلَيْكُم بِوَكِيلٍ
6/66. And your community has rejected it, but it's logical.
Say: "It is not I guard you."

لِّكُلِّ نَبَإٍ مُّسْتَقَرٌّ وَسَوْفَ تَعْلَمُونَ
6/67. For each news (in Alquran) is facts were determined,
and you shall know.